MBNA solicitors letter

mort1768

Got an MBNA solicitors letter today saying i must pay the 10.5 k that i owe them on the credit card. I am going through payplan and MBNA have had my financial statement and are getting what i can afford to give them.

I will forward the letter to payplan but in it they say if they get a county court judgement against me then they can do one of the following

A warrant of execution which enables baliffs to attend your property and remove goods to the value of your outstanding debt.

A charging order against your property or assets

An attachment of earnings where a percentage f your salary would be deducted by your employer and paid directly to us

An order to attend court to provide information about your financial affairs under oath.

Can they do all these things ?

CLAPTON

it is most unlikely that will go to the county court because they know they will probably be worst off than if they didn't. They can't 'get' a CCJ, they can only apply and ask the judge. it is very unlikely the judge will look favourably on them if you are already going with Payplan.

if you read the various threads on this board you will hear about MBNA as being the most hostile and aggressive CC creditors but its all designed to frighten you into paying more to them than your other creditors. and it works sometimes...just stick with payplan.

Tootsie_Roll

CLAPTON wrote:

it is most unlikely that will go to the county court because they know they will probably be worst off than if they didn't. They can't 'get' a CCJ, they can only apply and ask the judge. it is very unlikely the judge will look favourably on them if you are already going with Payplan.

if you read the various threads on this board you will hear about MBNA as being the most hostile and aggressive CC creditors but its all designed to frighten you into paying more to them than your other creditors. and it works sometimes...just stick with payplan.

Quite a dangerous statement to make ! You are partly right, MBNA are very difficult to deal with and it is possible they wont take further action through the courts - but only possible, it's also possible that they will, certainly not unlikely as you put it. In my opinion giving advice like this without knowing all the facts is scandalous.

The judge may not award a bigger monthly payment - but is the op a homeowner with equity ? Charging orders on forthwith judgments are becoming more and more popular and lenders are actively pursuing this strategy now. Judges also look at the whole financial situation - not just the disposable income, so to say he wont look favourably on them is just wrong.

It's OK to let people know all potential outcomes to perhaps put their minds at ease slightly but as always the advice in this situation should be to seek independant advice from someone in possession of all the facts as it is too much of a gamble otherwise.

Pigeongirl

I'm assuming that if they did take you to court then you would not have any kind of defence because you DO owe the debt so they will get a judgment against you which they can then enforce by any of those methods mentioned. If they do get a judgment then you could submit an N245 application to the court to pay by installments. If they want more than you are offering then eventually a hearing can be arranged in front of a District Judge; you will still have a CCJ registered against you for 6 years.

Whether they will go down the court route I really couldn't say. I hope not.

Oh and in my experience an application for a charging order is very rarely refused - it is very popular as Tootsie Roll says.

This is just my experience though.

CLAPTON

i accept what you say....you're quite right to say that MBNA may go to court and that the OP should take independant advise.
In my view the fact that OP is already using Payplan constitutes independant advise....are you suggesting that the OP should seek advise outside of Payplan?

Tootsie_Roll

CLAPTON wrote:

i accept what you say....you're quite right to say that MBNA may go to court and that the OP should take independant advise.
In my view the fact that OP is already using Payplan constitutes independant advise....are you suggesting that the OP should seek advise outside of Payplan?

No Payplan are very good. I'm unsure if they get involved at litigation/charging order stage though.

paul10mm

Hi
Please do your self a favor dont take any notice of tootsieroll he/she/it works in debt collection and just loves to miss inform!!Just go with payplan they will be fine you cant pay what you dont have!! Your not hear to be lied to!

AGB863

paul10mm wrote:

Hi
Please do your self a favor dont take any notice of tootsieroll he/she/it works in debt collection and just loves to miss inform!!Just go with payplan they will be fine you cant pay what you dont have!! Your not hear to be lied to!

I work for a voluntary debt management company ( we do not charge for our services), but unfortunately, T_Roll is actually giving the correct information.

MBNA could go for a number of options and a CCJ is one option and if the CCJ is not adhered to then a warrent can be issued and baliffs can be requested to visit.

If MBNA do go for a CCJ, you will have the opportunity to show to the court your income and expenditure and make an offer of repayment before the CCJ is issued. The Judge can take into account the offer being made or set the repayment at a level that he / she deams to be satisfactory. If you are not happy at this level you can seek a variation order as a previous poster has listed.

What is happening more frequently, as T_Roll has already stated, is that if you are a home owner, more and more creditors are going through the courts to get charging order on a persons property. This turns an unsecured debt in to a secured debt.

You still have to repay the monthly agreement that you may have negiotiated and if you default, the creditor could apply to the court to have the property sold.

If you sell the property of your own accord, any creditor with a charging order would have 1st call on any capital that is available once the mortgage is cleared off.

We are currently fighting one case where a client has 18 creditors with some £140k of unsecured debts. One creditor is owed £3k and is applying for a charging order. There is insufficient capital in the property to pay off all the creditors if the property was sold and we are aguing that to apply a charging order to one credior would be unfair to all of the other creditors who have accepted the offers of repayments.

Unfortunatley this type of court case is becoming more common and adds to the stress that people are already suffering due to not being able to meet their liabilities.

System

Can a charging order be made on someone who hasn't got a property, i.e me?

AGB863

lennymfo wrote:

Can a charging order be made on someone who hasn't got a property, i.e me?

If you do not own your own property no as you do not have an asset for the charge to be put on, so do not worry :T

System

Thank you AGB863. Have you considered applying for the job vacancy on this board? I believe that your employ with a non-fee charging compnay that your advice would be invaulable. I'm sure I saw a link here recently?? Anyone??